Brokerages bullish on Reliance Industries amid cheap valuations, shares could rally 36%

Over the past 12 months, Reliance Industries shares have recorded a four percent uptick.

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26 Aug, 2025 12:21

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International brokerages Jefferies and Bernstein reiterated their bullishness on chemicals-to-retail conglomerate Reliance Industries Ltd.

Reliance Industries' stock price has seen a 22 percent correction from its 52-week high. As a result, RIL's valuations have become the cheapest since the COVID-19 shock seen in March 2020, said Jefferies, making for a great buying opportunity as the risk-reward ratio turns attractive.

In FY26, Jefferies expects Reliance Industries to see mid-teens growth restoration in the retail segment, with the brokerage pencilling in a likely listing of telecom arm Jio. Further, according to Jefferies, Reliance Industries might see O2C profitability improve.

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All segments will likely contribute to a 14 percent EBITDA growth in FY26. Jefferies maintained its 'buy' call, with a target price of Rs 1,690, indicating an upside of 36 percent.

Bernstein, meanwhile, maintained its 'outperform' rating on Reliance, setting a target price of Rs 1,520, implying a 25 percent rally from current levels. The brokerage expects 2025 to mark a recovery cycle, with earnings growth driven by the Telecom and Retail segments, alongside improving refining margins.

According to Bernstein, Reliance Jio’s average revenue per user (ARPU) could rise 12 percent, even without tariff hikes, supported by a 4–5 percent increase in subscribers. The Retail segment is expected to deliver double-digit EBITDA growth, while gross refining margins (GRMs) will also likely improve this year.

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